DOVER — Former state Rep. Donald Andolina said his report to the Dover Crimeline jump-started the investigation into the investments made with Dover businessman Nickolas Skaltsis.

Needing his money on time to pay health care bills for his wife, who was in a facility for six months after developing cancer, Andolina said he did not waste any time asking police for help in urging Skaltsis to pay him.

“I called Crimeline in August when I realized that (Skaltsis) was not going to pay up,” Andolina said.

Andolina invested $20,000 with Skaltsis in August 2011 expecting to see his money be returned with 12-percent interest. His promissory note stated he would receive monthly interest payments and a final payout in a year. Each month, although sometimes a few days late, Andolina said he received a $200 check.

“I received 11 checks,” he said, but he did not receive his final payout in August 2012.

Five months later, Andolina is still waiting for his $20,000.

Andolina is among nearly 12 people in the community who have invested in Skaltsis and among a handful who have filed civil lawsuits against Skaltsis.

According to the multiple civil lawsuits filed in Strafford County Superior Court, approximately $200,000 has been lost. According to an anonymous letter received by the City Council and Foster's, along with Andolina, “Skaltsis has raked in over $350,000.00 from local people who invested funds with promises of a substantial return on investment.”

As reported earlier, Foster's learned that in late November Dover police and representatives of the Attorney General's office conducted a search of Skaltsis' home after allegations of investment fraud, and computers and related equipment were confiscated from his home.

The search warrant was issued by the Attorney General's office and sealed by the court at the AG's request.

The warrant was in part the result of the multiple civil lawsuits filed by investors in Strafford County Superior Court alleging Skaltsis committed fraud by taking investment money and using it for personal gain or other reasons different from the money's original intention.

Foster's learned an examination is being done of the computers to determine whether Skaltsis had committed any civil or criminal activities regarding the use of funds he received. Foster's has also learned the AG's office could have a determination as to whether or not any criminal activity was found by the end of this week.

Attorney Jeffrey Spill, deputy director of the Bureau of Securities Regulation, confirmed that more information could potentially be available by the end of the week, but was unable to release any further information.

“I can't comment on that just because it is still under investigation,” Spill said.

According to Andolina, his report to Dover Crimeline led to him speaking with Dover Police Chief Anthony Colarusso, who then assigned a detective to begin the investigation of the case.

A few weeks ago, Andolina received an email from the Secretary of State's Bureau of Securities Regulation that said the case was still active.

“I assure you this case is a top priority and I'm working on it daily,” the email read.

“This is so entangled, it is unbelievable,” Andolina said.

TIMELINE

Andolina met Skaltsis in November of 2010. Andolina had just become a state representative at the time. They formed a friendship that eventually led to Andolina trusting Skaltsis enough to invest in his business.

In the winter of 2010, Skaltsis took Andolina to see some of his real estate in Dover, Rochester and Somersworth and described how his business operated.

“… he would buy depressed real estate at fractions of the appraised value,” Andolina wrote in a memo he gave to Foster's. “He explained that his typical focus was to acquire rentable property having at least 3 apartments. He would repair and/or refurbish those properties and had the option of selling it outright if the market was good, or to lease apartments until the market improved.”

Skaltsis told Andolina his business was based upon investors buying into the various projects.

Investors would receive a signed promissory note, typically made out for a 12-month payout. According to Andolina, Skaltsis preferred people did not invest more than $20,000. He said this was a precautionary step he took in case his investors were to fall into money problems. If his investors needed the money back, “he would give the investor verbal assurance that he would payout his investment with 30 day notice.”

On Aug. 1, 2012, when Andolina's final payout was due, Skaltsis was unreachable. Andolina called Skaltsis several times a week, sent emails and knocked on his front door at 6 Erik Drive.

Skaltsis responded to Andolina one time to threaten him with a restraining order after Andolina started to send faxes around the clock to Skaltsis demanding his money. Andolina stopped faxing, did not receive a restraining order and never received his money.

On Aug. 5, Andolina sent his report to the Dover Crimeline.

On Aug. 13, Andolina brought together the “known” investors. They met at the Dover Public Library to discuss their options and attempt to work together to receive their money.

Five days later, Andolina said a handful of investors went to the Attorney General's office to tell their stories.

According to Andolina, around Oct. 6, Apple Harvest Day, an investor who wishes to remain anonymous, asked Skaltsis to meet him for breakfast. Skaltsis declined the offer and said he was trying to stay out of the public eye.

Former superintendent of schools, John O'Connor, who invested $15,000 with Skaltsis, was sending Skaltsis numerous text messages and even sitting outside of his home trying to retrieve his money. The last time he heard from Skaltsis was through a text message sent on Oct. 8 that said he was working in Plainfield, Mass.

Several community members, including O'Connor and Andolina, said Skaltsis is currently in Concord at a New Hampshire state hospital. They say he has been there since November.